Royal Credit Limited has issued a stern warning to the public and potential investors against buying shares in Directline Assurance, dismissing recent reports of a 90% stake sale as entirely false, fraudulent, and misleading.
In a letter dated July 18 and addressed to the Insurance Regulatory Authority (IRA), Royal Credit led by its chairman, Dr. S.K. Macharia expressed shock over a public advertisement that claimed a large portion of Directline Assurance was up for sale, pricing shares at Kshs 81 each.
“We have seen an attached ad, purporting to sell 90% shares of Directline Assurance Company Limited (DAC), and is signed by purported directors on behalf of purported shareholders,” the letter read in part.
Royal Credit categorically denied any involvement in the alleged transaction and stated that no shareholder had authorized or approved any such sale.
It called the advert a fraudulent scheme designed to deceive the public.
“The public is advised to ignore the ad and not to be trapped in a corrupt manipulation by those involved as they stand to lose their money for no reason,” the firm warned.
The company has requested the IRA to urgently investigate the matter, questioning whether any forged or unauthorized documents related to the supposed transaction were submitted to the regulator.
“IRA is requested to confirm whether it has issued written authority to those purporting to sell the shares of DAC,” Royal Credit added, emphasizing that only legitimate shareholders can sanction any share sale.
Royal Credit urged investors to conduct thorough due diligence and reiterated that no shares in Directline Assurance are up for sale at this time. It also stressed that any sale must be approved exclusively by legal shareholders with documented authority.
“Royal Credit Limited has not and does not intend to sell any of its shares in Directline Assurance,” the company declared.
The firm’s statement comes amid growing concerns over fraud and misinformation targeting investors in Kenya’s insurance and financial sectors.
The IRA has not yet issued a public response regarding the matter.
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